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Apple could be required to permit competitors to run separate app stores on Apple devices in the UK, following a decision from the market watchdog.

This represents a major shift to the company's infamous "closed system" where apps can only be downloaded from its own official marketplace.

But the Competition and Markets Authority has designated both Apple and Google as having "dominant market position" - indicating they have a lot of power over mobile platforms.

Regulatory Assessment

The regulator said the tech firms "could be restricting innovation and competition".

But the authority clarified it did not "determine or presume misconduct" from the firms.

"Mobile applications contributes 1.5% of the British economy and supports around 400,000 jobs, which is why it's crucial these sectors work well for enterprises," stated a top executive from the competition authority.

Around ninety to one hundred percent of UK mobile devices operate using Apple or Google's operating systems, creating what the regulator calls an "virtual monopoly".

Based on recent analysis, 48.5% of UK mobile owners own an Apple device - which runs the iOS operating system - with the overwhelming bulk of the rest using Google's Android.

Apple's Response

The regulatory probe examined how dominant the companies' own apps are versus competitors - as well as their web applications and platform software.

It is unknown what changes the regulator will seek to implement, but previously it published roadmaps detailing potential measures it could take.

These include requiring it to be easier for people to transition between iOS and Android phones, and for both companies to rank apps "in a fair, objective and transparent manner" in their marketplaces.

The Cupertino company specifically may be compelled to allow alternative app stores on its products, and let people to install apps directly from companies' websites.

This would follow comparable regulations in the European Union, which previously imposed measures against the company for restrictive practices.

Apple warned the UK could face delays to getting new features - as has occurred in the EU - which the company attributes to heavy regulation.

For instance, some Apple Intelligence features which have been rolled out in other regions are not available in the European market.

"Apple faces intense rivalry in every market where we do business, and we work tirelessly to create the best products, solutions and user experience," the company said in a statement.

"Britain's implementation of European regulations would weaken that, resulting in consumers with reduced data protection and security, delayed access to latest functions, and a fragmented, less seamless user journey."

The Search Giant's Position

Google device owners can presently use alternative marketplaces - though critics say they are not as smooth as the company's official application marketplace.

The CMA's roadmap said Google may have to "change the user experience" of installing applications straight from online sources, as well as "remove user frictions" when using alternative app stores.

"We simply do not see the justification for the current classification," a company competition lead remarked.

The executive said "most" of Google device owners use third-party platforms or download apps directly from a creator's site, and asserted there is a much wider selection of applications available for Google device owners versus those on iOS products.

"Currently available are 24,000 Google-compatible devices from 1,300 phone manufacturers globally, facing strong rivalry from Apple's platform in the UK," the representative added.

Android is an open-source operating system, which means creators can utilize and develop on top of it for free.

Google contends this means it opens up market competition.

But advocacy organizations said curbs on these companies' power in other countries "are already helping businesses to innovate and giving customers more options".

"Their dominance is now causing real harm by limiting options for consumers and market rivalry for businesses," commented a policy expert.